Business, general

Intel cuts prices of Pentium chips

Article Abstract:

Intel announces price cuts ranging from 7% to 40% for its high-end Pentium microprocessors. The price cuts are slated to go into effect during the week ending Feb 3, 1995, and are an attempt by the company to regain some of the market share lost following the announcement of a flaw in the Pentium chip in Nov 1994. The company initially insisted that the flaw was minor, but was later forced through public pressure to recall the chip at an estimated cost of $475 million. The planned cost cuts will affect the 75MHz Pentiums, which will drop in price from $495 a chip to $301 per chip in lots of 1,000. The company will offer similar 40% price reductions for its 66MHz Pentiums and 7% price cuts for the 90MHz Pentium chips. Industry analysts believe the price reductions will create more demand for the Pentium CPU line and consumers may see a reduction in the cost of PCs. Intel stock was up $1.563 at $72.188 in Nasdaq trading on Feb 3, 1995.

Publisher:The New York Times CompanyPublication Name:The New York TimesSubject:Business, generalISSN:0362-4331Year:1995

Intel revamps the pricing of its chips

Article Abstract:

Intel is adjusting its pricing practices as part of an effort to boost sales of PCs in the home market and to increase profits. The company will reduce prices on up to one third of its Pentium processors in Aug 1996, but plans no further price reductions for the rest of the year. Intel originally planned to reduce prices across all of its Pentiums, but decided to focus the price reductions on the more powerful processors in an attempt to encourage PC vendors to develop more powerful systems. The company has not officially announced the price reductions and its pricing policy is still subject to change. Price changes would not affect chip clone makers because they have been unable to develop the faster Pentium clone chips and cannot provide volume production of competing chips. System vendors are pleased that Intel is changing its pricing structure at this point, and not during the high-volume Holiday season.

Author: Lohr, Steve

Publisher:The New York Times CompanyPublication Name:The New York TimesSubject:Business, generalISSN:0362-4331Year:1996

Planning, Company business planning, Company pricing policy

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Price war between Advanced Micro and Intel ravages chip stocks

Article Abstract:

It is nothing new to chip stock analysts: Intel introduces a new semiconductor product, Advanced Micro Devices puts out something comparable but can't keep the production level going; by the time AMD improves production, Intel cuts prices. Now Intel is even cutting prices on low-end market items rather than lose out on sales in any segment.

Comment:

Company has to overcome mfg. problems to keep pace in price war

Author: Fisher, Lawrence M.

Publisher:The New York Times CompanyPublication Name:The New York TimesSubject:Business, generalISSN:0362-4331Year:1999